Service Provider Cost Index

A LOOK AT Towing and Road SERVICE Industry Inflation 2012 - 2018

 

The Service Provider Index measures the underlying costs of running a roadside or towing business by using publicly available federal government data from the U.S. Bureau of Labor Statistics, U.S. Energy Information Administration and FRED® database.

Included with the index are the step-by-step framework used to build the analysis as well as an Excel model with the raw data, calculations, assumptions and sources. These files are shared as an open framework for the industry to review and to provide input.

TO ACCESS THIS ANALYSIS, PLEASE COMPLETE THE FOLLOWING:

The Top 3 COST DRIVERS 

Labor Index Graph

Labor

Labor is the largest expense (40% of total operating cost) for service providers and is critical to their profitability. Tow and road service operators have experienced steadily rising labor costs since 2012.

Trucks Index

Trucks

Prices for new trucks have outpaced consumer inflation, putting additional cost burden on providers. Trucks account for 20% of total operating costs.

Fuel Index Graph

Fuel

Fuel prices have been rising since 2016, making  it more expensive for service providers to perform each job. Fuel constitutes approximately 15% of a service provider's operating cost.